Pakistan Seeks Chinese Debt Relief to Bridge IMF Gap

Pakistan has requested China to reschedule a USD 3.4 billion debt for two years in order to address a foreign funding gap identified by the IMF. This move follows a similar request five months ago. The debt rescheduling is part of a broader USD 5 billion external financing strategy.

Pakistan has approached China with a request to reschedule its USD 3.4 billion debt over two years, aiming to cover a foreign funding shortfall highlighted by the International Monetary Fund (IMF). The request marks Islamabad's second appeal for aid from Beijing in just five months.

The formal plea was delivered by Deputy Prime Minister Ishaq Dar during a visit to Beijing, according to The Express Tribune, citing governmental insiders. This appeal includes a proposal for the rearrangement of loans maturing from October 2024 to September 2027, offered by China's Export-Import Bank (Exim Bank).

The move is part of a larger effort to bridge an external financing gap of USD 5 billion, stretching through a three-year program period, crucial for maintaining fiscal stability as appreciated in a joint China-Pakistan statement following President Asif Ali Zardari's state visit to China.

(With inputs from agencies.)